Insurance regulation

¡Supera tus tareas y exámenes ahora con Quizwiz!

agents misrepresents policy benefits to convince policy owner to replace policies

All of the following would be considered rebating except? A agent offering to share commision with another policy holder B agent offers tickets to baseball game as inducement to buy insurance C agents misrepresents policy benefits to convince policy owner to replace policies

name, address, identificaiton number and date of insurance

An agencys license must have what on it?

commission

Any payment to a producer from an insuer that is contingent on the sale of an insurance policy or contract is called

UBEA

Application for insurance must be made using

false advertising

Circulating deceptive sales material to the public is what type of unfair trade practice?

license will be cancelled

What happens if an insurer wants to renew license and they miss the deadline date?

by the last day of the birth month

What is the deadline in SC for completeing your continuing ed credits?

SC legislature

What makes laws including business laws

consumer report

What report will provide the underwriter with the information about an insurance applicant's credit?

producer

What type of licensee represents the insurance company

defamation

When a producer was reviewing a potential customers coverage written by another company, the producer made several remarks that were maliciously critical of that of the insurer. The producer could be found guilty of?

30 days

When an producers appointment is canceld by insurer, the insurer must notify the Dpeartment of insurance within what time limit?

30

Fines levied by director in lieu of license revoking must be paid within how many days?

commission

How are insurance producers compensated, where a percentage of premium paid goes to producer

2 years

How long can you go to prison for with a misdemeanor in insurance

180 days

How long is a temporary license valid?

15 days

How many days do you have to file with a director a producers appointment

$25

How much is the renewal fee for renewing license for insurance agency/producer in SC

10000, 2 years

IF person is conviceted with a midemanor for acting without a license how much is the fine and imprisonment?

50

If a director gives a cease and desist order the violator must pay a max amount of how much if unwillful

30 days

If a director gives someone a Cease and Desist order how many days do they have to comply?

restitution and pay difference of tax owed

If a person covicts fraud they must make full?

director

If a person is suspected of acting in violation for the insurance code, who may request a legal hearing and give written notice of the time and place of all hearings to person cited to appear?

defamation

when a producer was reviewing a potential customers coverage written by another company insurer made alot of marks that was critical of insurer. The prodcuer could be found guilty of

fiduciary relationship

when an individual places trust in someone else to perform certain duties or actions

3 days

within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

respond to consumers complaint

Under the fair credit reporting act, if the cosumer challenges the accuracy of the information contained in his or her report the reporting agency must

fiduciary

When handling premium funds in the conduct of their business insurance producers are acting in what capacity?

never that is prohibited

When is ok to sign blank forms?

telling client that his first premium will be waived if he purchased policy

Which of the following is an example of a producer being involved in an unfair trade practice of rebating A charging client a higher premium for same policy as another client in same recurring class B making deceptive statements about competitor C telling client that his first premium will be waived if he purchased policy

Director is elected for term for 4 years

Which of the following statements is not true regarding the director of insurance in the state? A director is full time and salaried B Director is elected for term for 4 years

confirming future dividends in a life insurance proposal

Which of the following would be considered a ilgal inducement to purchase insurance A inviting prospective clients to grand opening of producers new office B confirming future dividends in a life insurance proposal C mailing in a agents brochure

producer

a person who is authorized by an insurer to sell, solicit, negotiate or receive and deliver insurance policies on behalf of the insurer

never

In what situation is it legal to limit coverage based on marital status?

50 dollars a day

if you violate a cease and desist order how much is the fine

false advertising

illegal practice of advertising materials that are untrue, deceptive or misleading

broker

insurance producer not appointed by an insurance company and is deemed to be a legal representative of the client.

rebates

insureds offer something of value in order to induce sales of an insurance product

misrepresentation

issuing or publishing illustration or sales material that is false or misleading

misrepresentation

issuing sales material with exaggerated statements about policy benefits

directors

licenseing people is the job of who?

twisting

misrepresentation or incomplete fraudulent comparison of insurance policies that persuades an insured/owner to his or her detriment to cancel, lapse, switch policies or take out policy with another insurer is called

defamation

occurs when an oral or written statement is made that is intended to injure a person engaged in insurance business

Fair Credit Reporting Act

protects consumers from circulation of inaccurate or obsolete personal information or financial information?

Discrimination

rates premiums or policy benefits for persons within the same class or with the same life expectancy is illegal pertaining to religion, race or marital status

Federal Fair Credit Reporting Act

regulates consumer reports

dividends from mutual insurer

All of the following would be considered rebates if offered to insured in sale of insured except A dividends from mutual insurer B an offer of employment C stocks, securities or bonds

discrimination

Two individuals are in the same risk and age class, yet they are charged different rates due to insignificant risk factor. What is this called?

15000 unwillful and 30000 willful

If a vilolator is an insurer how much will fine be?

cease and desist order

If after a hearing the Director of Insurance determines that an insuer has engaged in an unfair or deceptive method of competition or act the director will order a what?

200

If any producer signs any blank forms how much is the fee?

6 months

A producer failed to complete required CE hours for compliance period. Within what time period after deadline may license be reinstated?

any licensed insurer who is licensed in the same line of insurance

A producer may share a commission with?

sexual orientation

AN insurance application cannot ask about what kind of information from an applicant?

producer

AN insurance producer transacting business under any name other than producers legal name must notify the Director prior to using the assumed name

hearing

ANyone who violates a cease and desist order will be subject to a what before the director?

Illegal under any circumstances

After insurer publishes intimidating brochures, that protray insurers competition as financially and professioanlly unstable what is this called

suggesting negotiations in settling claims

All of the following are unfair claim settlements except? A refusing to pay claims without conducting an investigation B failing to adopt and implant standards for settling claims C suggesting negotiations in settling claims

client

An insurance producer has not been appointed to an insurance company who is the producer considered to represent?

illegal

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. what is going on here?

5 days

If consumer requests additional information concerning an investigative consumer report, how long does insurance agency or insurer have to comply?

insurer does not have certificate of authority in another state

Before granting a certificate of authority to a company the director must be satisfied by proper evidence that all of following are true EXCEPT A insurer does not have certificate of authority in another state B insurer has not entered into any agreement which may render proceedings hazardous to this state

100

If director gives a cease and desist order the violator must pay max amount of how much is willful?

100

if a cease and desist order is willful how much will the fine be?

The customer's associates, friends, and neighbors provide the report's data

Comparison to the consumer reports which of the following descirbes a unique characteristic of investigative consumer reports?

8

Concerning continuing ed classes the class line of authority how many credit hours do you have to have?

misrepresentation

During a sales representation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

Without receiving written consent from an insurance regulatory authority

Federal law makes it illegal for anyone convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce?

coercion

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as?

unwillfull 2500 willfull 5000

If violater is a person licensed by director the fine will be how much?

director

If you supervise and regulate rates you are what part of insurance position?

fraud

Insurance company assures new policy holders that the premium costs will not increase for a period of time of at least 5 years. However due to increasing financial strain they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?

yes as long as both are licensed for that line of business

Is it ever possible for more than one producer to split commissions transaction in this state?

twisting

agents who pursuade insured's to cancel a policy in favor of another one when might be insurers best interest are guilty of

15000/30000

an insurer may be fined with unwillful or willful fines?

rebating

any inducement offered to the insured in the sale of insurance products that is not specified in the policy

2500

any person convicted of a misdemeanor must be punished with how much fines/

misdemeanor

any person who acts insurance without a license is commiting a?

misrepresentation

anyone who issues, publishes or circulates any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms or even oral statements is commiting somthing called/

5

director will examine each authorized user how many years?

coercion

forcing another client to buy insurance from a particular lender as a condition of granting a loan is defiend as?

coercion

to require applicant to purchase insurance from a specific insurer

discrimination

twin brothers applied for life insurance from company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a way stronger financial situation than the other. Because of this the company charged him with a higher rate for his insurance. This practice is considered?

Fair credit reporting act

what act established procedure that cocumer reporting agencies must follow in order to ensure that records are confidential, accurate, relevbant and properly used

rebate

what is allowed if its in the best interest of the client?

licensed agency

what is another word for producer

making comparisons between different policies

which of the following is not considered a misrepresentation as it pertains to unfair trade practices? A making comparisons between different policies B stating insurance policy is share of shock

$100

A special producer fee is?

$25 18

How much is the insurance license fee? And what is the age requirement?

every 2 years

How often do you need to complete continuing ed classes in order obtain license?

within 2 years from effective date

If a producer gets their license revoked how long until they can reapply for license again?

30 days

If a producer has licence revoked director may allow the producer to pay penalty of how many days would they have to pay?

30 days

If a producer has to report any actions against another producer how many days do they get to do it?

10 days

If a producer is convicted of a crime how long of a notice does a person get for license revoking?

6 months

If a producer lets insurance license expire for failure to comply with CE hours what time limit is giving to them

$50

If a producer lets insurance license expire what is the required penalty fee?

Misdemeanor

If a producer pretends to be insurer, collects from employer without insurers authority, secure cash advances by false statements or fail to remit or account for collected funds they can get what kind of conviction?

every 2 years

If an insurer wants to renew license for insurance how often should they do it?

September 30 of even numbered years

If an insurer wants to renew license for insurance what is the deadline date?

30 days

If your a nonresident producer who moves from one state to another how many days do you have to change your address and provide certification for new resident state?

reinsure policies of insolvent insurer through other companies

In event of insurers insolvency south Carolinas life and health guarantee association will

appointed by governor

In insurance how is the director elected into office?

show proof of valid license for same line of authority in home state

In order to become licensed as a non resident in this state what must a person do?

the foreign company

The director is conducting an exam of foreign company transacting business in SC. Who is responsible for cost of exam?

true

The remainder credits can be taking from any subject true or false

supervise and regulate rates, ensure all laws faithfully executed, report to attorney general and instate civil actions, act as circuit court judge, require witnesses, license people, issue cease and desist orders and charge perjury

What are the general duties and resonsibilities of a director?

currently licensed as resident, in good standing with state live, apply for same line of authority, submitted proper requests for licensure and paid fees, awards on non residents

What are the qualifications one has to meet if they are to become a nonresident producer?

30 days

When a producers appointment is cancelled by company department of insurance must be notified within?

immediately but not more than 2 years

When director finds license has been obtained by fraud or misrepresentation he may suspend the license when?

producer promptly forwarding premiums to insurance company

Which of the following is an example of a producers fiduciary responsibilities A producer doing a review on clients coverage B producer promptly forwarding premiums to insurance company

submit a request in writing to department to cancel the lines of authority

multi line producers who do not wish to complete 8 hurs required of line of authority portion must do what?

special producer

person employed by insurer or general producer to travel in a designated territory to supervise and assist producers in the proper discharge of their duties

travel producer

producer of common carrier who sells only transportation ticket policies of accident and health insurance or baggage insurance

broker

In an insurance transaction who is authorized to represent the client

obtain insurance agency license

In order to transact insurance business in this state, an agency must meet all the requirements EXCEPT A pay required fees B Designate a license producer to insure compliance with insurance laws C submit uniform business entity application D obtain insurance agency license

September 30 of every even number years ( every 2 years)

When are insurers required to renew appointments?

$100

a general producer license fee is?

passing state licensing exam

all of the following are requirements for nonresident license except A submitting a license application from home state B passing state licensing exam C submitting proper application and paying fees

paying fee and online renewal application

all producers licensed in SC must renew their license by doing what 2 things?

5 years

all producers must make and keep a full and correct record of the insurance business they transact showing policy number date term amount insured and premiums for how long?

8

A producer licensed in life and health as well as property and casualty must complete a minimum of how many hours in each line of authority every 2 years?

5 years

How long must a licnesee keep records of insurance transaction files available for inspection by director?

director of his designee

If a producer has to report any actions against another producer who do they tell?

30 days

Producers must notify department with change of address or legal name changes within what time limit?

director

When transacting business who must be notified prior to using assumed name?

producer

authorized by insurer to sell, solicit, negotiate or receive and deliver insurance policies on behalf of the insurer

authorized representative of insurer

before an applicant must act as an agent who must they be appointed by?

3

for continuing ed how many credit hours of ethics do you have to complete?

8

for continuing ed how many hours is needed for each line of authority?

ethics

for continuing ed you have to have 3 credits for which subject

individual producer

formerly referred to as an agent,

director

if you ensure all laws faithfully executed you are part of what insurance position?

general producer

person who as a representative of an insurer or insurers, has the authority to supervise producers and local producers and exercise such management authority as delegated by principal

special producer

special agent is also called

30 days

A producer must report to director about any criminal prosecution of the producer taken in any jurisdiction within how many of initial pretrial hearing date?

failure to meet sales quota

A producers license may be revoked by director for all following except? A conviction of crime in moral turpitide B failure to meet sales quota

$20

A travel insurance accident renewal license fee is?

every 5 years

Director must conduct an examination of each insurer in state at least?

make laws related to business of insurance in the state

Director of insurance has all following duties except? A make laws related to business of insurance in the state B make regulations to carry out the laws relating to business of insurance in state

24

How many hours of continuing ed must one complete in order to renew insurance agent license?

2 years

If a producer gets fined because of a misdemeanor how long could you get imprisoned for?

5 years from now

The director has just finished examining a domestic insured. When is the director not required to examine the same insurer?

every 5 years

The director must conduct an exam of each insurer in this state at least?

be a registered voter in state of SC

Which of the following is the minimum requirements to be licensed as a producer in south Carolina EXCEPT A pay one time producer licensing fee B be registered voter in SC C have not been convicted of felony in past 5 years D pass required license exam

general producer

Who is also referred to as a general agent

the examined insurer

Who is responsible for covering expenses associated with exam of domestic insurers?

Director or chief of insurance commissioner

Who is the State Departmnet of Insurance managed and operated by?

directors

Whos job is it to charge purjury in insurance

directors

Whos job is it to send out cease and desist orders?

director

You have to be a memeber for govenors cabinet in order to qualify for what position in insurance?

director

You have to be appointed by governor if you want what position in insurance?

$40

a limited lines individual producer resident and nonresident is how much?

18

a maximum of how many credit hours for carrying forward to next biennial period

change of address and certification from new resident state

a nonresident producer who moves from one state to another must file what two things?

agency

acts as an insurance producer is required to obtain insurance producer license

appointing insurance company

all appointments must be submitted by

policy number, date, term, amount insured, premiums

all producers must make and keep a full and correct record of the insurance business they transact showing what?

insurance producer license

an agency acting as insurance producer is required to obtain what?

certificate of authority

before any insurance company can leggaly transact insurance it must first obtain what?

agency

before approving an insurance producer application who must confirm agency has paid the fees and designated a producer responsible enough

director

being a court ordered judge or needing witnesses is all part of what career in insurance position?

5

director must conduct exam of every insurer authorized to transact business in this state how many years?

fiduciary relationship

hold money belonging to others in trust and transfer it to designation as soon as possible

every 2 years

how often must producer complete CE hours

30 days

if a producer gets license revoked how long will it take judicial to approve

individual producer

person who is authorized by insurer to represent it and to offer to the public insurance policies or contracts and attendant services that are performed incidental to such policies or contracts

misdemeanor

producer who fails to act as a fiduciary commits what crime?


Conjuntos de estudio relacionados

Sp2 - DLU3 - Tpc02 Actividades para vivir sano

View Set

Macroeconomics Exam 3: Chapter 18

View Set

BSC 116: EXAM 4 (HEINRICH) CHAPTER 54

View Set

CH 13 Lab Textbook Reading Questions

View Set

APES Unit 1, progress 1, and biochemical cycles

View Set

NT 2-Epistles-3 (Romans, Galatians, Philippians, Colossians, Philemon, 2 Corinthians)

View Set

141 Intro to Financial Regulation

View Set

BUAD 2070 Final Exam - Chapter 4

View Set